Licenses for cigarette commerce increased 100-fold

The license for the right to sell imported tobacco goods will cost 2 million lei, increasing 100-fold. The government approved this decision on Wednesday, May 17. At the same time, the excise on cigarettes will increase – up to 10 % of the value of the sold goods. Now they represent 3% for filter cigarettes and 4 lei per 1000 units, for non-filters ones. The Minister of Agriculture and Food Industry (MAIA), Anatolie Gorodenco, noted that these proposals aim to improving the situation in the branch, as well as creating certain equitable conditions for agricultural producers of Moldova and importers of tobacco goods. At the same time, according to him, the increase of these costs could bring into the budget additional incomes up to 200 million lei. He mentioned that certain changes were made regarding the conditions of obtaining the license. For the moment, there were not made public as they are not completed yet and are to be discussed. On the other hand, representatives of cigarette importers, who requested anonymity, state that government’s actions intend to remove the competitors out of the tobacco market and to monopolize it, leading to increasing prices for cigarette. The volume of tobacco goods decreased, in January-March 2006, by 32%, diminishing the general rate of industrial production by 1%.